Pension and Other Postretirement Benefits (Tables)

9 Months Ended

Sep. 30, 2012

Components of Pension Expense for Defined Benefit Pension Plan

The components of pension expense for the defined benefit pension plan reflected in our consolidated statement of income (loss) are shown in the table below and reflect the portion of the pension expense of the combined HSBC North America Pension Plan (either the “HSBC North America Pension Plan” or the “Plan”) which has been allocated to HSBC Finance Corporation:

	Three Months  Ended September 30,						Nine Months  Ended September 30,
	2012			2011			2012			2011
	(in millions)
Service cost – benefits earned during the period	$	1		$	1		$	5		$	4
Interest cost on projected benefit obligation		14			8			35			25
Expected return on assets		(19	)		(10	)		(46	)		(29	)
Recognized losses		11			4			23			12
Curtailment gain		(4	)		-			(4	)		-
Pension expense	$	3		$	3		$	13		$	12

Components of Net Periodic Benefit Cost for Postretirement Medical Plan Benefits Other Than Pensions

Components of the net periodic benefit cost for our postretirement medical plan benefits other than pensions are as follows:

	Three Months  Ended September 30,				Nine Months  Ended September 30,
	2012		2011		2012		2011
	(in millions)
Service cost – benefits earned during the period	$	-	$	-	$	-	$	-
Interest cost		2		1		5		3
Pension expense	$	2	$	1	$	5	$	3